LPL Financial Reports Monthly Activity for November 2022

Rhea-AI Summary

LPL Financial (Nasdaq: LPLA) reported a total of $1.14 trillion in advisory and brokerage assets for November 2022, marking a 4.5% increase from October. The company added $5.6 billion in net new assets during the month, with advisory assets growing by 7.6% annually. However, client cash balances fell by 4.1% to $62.5 billion. Notably, net buying activity reached $9.4 billion, a significant increase from previous months. These metrics highlight a solid growth trajectory in terms of assets despite a decline in cash balances.

Positive

• Total advisory and brokerage assets rose to $1.14 trillion, up 4.5% month-over-month.
• Net new assets for November were $5.6 billion, with a 6.2% annualized growth rate.
• Advisory assets increased by 7.6% year-over-year, showcasing strong growth.

Negative

• Client cash balances decreased by 4.1% from October, falling to $62.5 billion.
• Insured and deposit cash account sweeps showed declines of 3.2% and 6.1% respectively.

SAN DIEGO, Dec. 15, 2022 (GLOBE NEWSWIRE) -- LPL Financial LLC ("LPL Financial"), a wholly owned subsidiary of LPL Financial Holdings Inc. (Nasdaq: LPLA) (the “Company”), today released its monthly activity report for November 2022.

Total advisory and brokerage assets at the end of November were $1.14 trillion, an increase of $49.3 billion, or 4.5%, compared to the end of October 2022.

Total net new assets for November were $5.6 billion, translating to a 6.2% annualized growth rate. This included $0.2 billion of brokerage assets from People's United that onboarded in November. Total net new advisory assets were $3.6 billion, translating to a 7.6% annualized growth rate.

Total client cash balances at the end of November were $62.5 billion, a decrease of $2.7 billion compared to the end of October 2022. Net buying in November was $9.4 billion.

(End of period $ in billions, unless noted)	November	October	Change	November	Change
	2022	2022	M/M	2021	Y/Y
Advisory and Brokerage Assets
Advisory assets	599.0	569.3	5.2%	620.1	(3.4%)
Brokerage assets	536.9	517.3	3.8%	550.7	(2.5%)
Total Advisory and Brokerage Assets	1,135.9	1,086.6	4.5%	1,170.8	(3.0%)
Total Net New Assets
Net new advisory assets	3.6	1.6	n/m	7.1	n/m
Net new brokerage assets	2.0	2.4	n/m	(0.3)	n/m
Total Net New Assets	5.6	4.0	n/m	6.9	n/m
Organic Net New Assets
Net new organic advisory assets	3.6	1.6	n/m	7.1	n/m
Net new organic brokerage assets	2.0	2.4	n/m	(0.3)	n/m
Total Organic Net New Assets	5.6	4.0	n/m	6.9	n/m
Net brokerage to advisory conversions	0.7	0.3	n/m	1.2	n/m
Client Cash Balances
Insured cash account sweep	45.4	46.9	(3.2%)	29.9	51.8%
Deposit cash account sweep	11.5	12.2	(6.1%)	8.5	34.8%
Total Bank Sweep	56.8	59.1	(3.9%)	38.4	47.9%
Money market sweep	3.0	3.1	(4.1%)	11.6	(74.1%)
Total Client Cash Sweep Held by Third Parties	59.8	62.2	(3.9%)	50.0	19.6%
Client cash account	2.7	3.0	(9.0%)	1.7	57.8%
Total Client Cash Balances	62.5	65.2	(4.1%)	51.7	20.9%
Net buy (sell) activity	9.4	7.7	n/m	5.5	n/m
Market Drivers
S&P 500 Index (end of period)	4,080	3,872	5.4%	4,567	(10.7%)
Russell 2000 Index (end of period)	1,887	1,847	2.2%	2,199	(14.2%)
Fed Funds daily effective rate (average bps)	377	308	22.4%	8	n/m

For additional information regarding these and other LPL Financial business metrics, please refer to the Company’s most recent earnings announcement, which is available in the quarterly results section of investor.lpl.com.

Contacts

Investor Relations
investor.relations@lplfinancial.com
(617) 897-4574

Media Relations
media.relations@lplfinancial.com
(980) 321-1232

About LPL Financial

LPL Financial Holdings Inc. (Nasdaq: LPLA) was founded on the principle that the firm should work for the advisor, and not the other way around. Today, LPL is a leader in the markets we serve^†, supporting more than 21,000 financial advisors, including advisors at approximately 1,100 institution-based investment programs and at approximately 500 registered investment advisor ("RIA") firms nationwide. We are steadfast in our commitment to the advisor-centered model and the belief that Americans deserve access to personalized guidance from a financial advisor. At LPL, independence means that advisors have the freedom they deserve to choose the business model, services, and technology resources that allow them to run their perfect practice. And they have the freedom to manage their client relationships, because they know their clients best. Simply put, we take care of our advisors, so they can take care of their clients.

^† Top RIA custodian (Cerulli Associates, 2020 U.S. RIA Marketplace Report); No. 1 Independent Broker-Dealer in the U.S. (Based on total revenues, Financial Planning magazine 1996-2022); among third-party providers of brokerage services to banks and credit unions, No. 1 in AUM Growth from Financial Institutions; No. 1 in Market Share of AUM from Financial Institutions; No. 1 in Market Share of Revenue from Financial Institutions; No. 1 on Financial Institution Market Share; No. 1 on Share of Advisors (2021-2022 Kehrer Bielan Research & Consulting Annual TPM Report). Fortune 500 as of June 2021.

LPL and its affiliated companies provide financial services only from the United States.

Securities and Advisory services offered through LPL Financial, an SEC-registered broker-dealer and investment advisor. Member FINRA/SIPC.

Throughout this communication, the terms “financial advisors” and “advisors” are used to refer to registered representatives and/or investment advisor representatives affiliated with LPL Financial.

We routinely disclose information that may be important to shareholders in the "Investor Relations" or "Press Releases" section of our website.

FAQ

What were LPL Financial's net new assets for November 2022?

LPL Financial reported net new assets of $5.6 billion for November 2022.

How much did LPL Financial's advisory and brokerage assets grow in November 2022?

Advisory and brokerage assets increased by 4.5%, reaching $1.14 trillion at the end of November.

What happened to LPL Financial's client cash balances in November 2022?

Client cash balances decreased by 4.1%, falling to $62.5 billion compared to October.

What was the growth rate of LPL Financial's advisory assets year-over-year?

The growth rate of LPL Financial's advisory assets was 7.6% year-over-year.